The U.S. markets were closed for a second day on Tuesday thanks to Hurricane Sandy. The storm has passed and people are assessing the damage. Currently 30 people have been killed by the storm but officials are worried that number will climb. Almost nine million people are without power. Estimates are suggesting the damage caused by the storm could hit $20 billion.
Both the NYSE and the NASDAQ exchanges are scheduled to open for normal trading tomorrow (Wednesday). After a weekend and a two-day closure, the pent up demand to open or close positions before the month ends on Wednesday (October 31st) could generate a lot of market volatility.
There is speculation about what stocks might move in the aftermath of Hurricane Sandy. It's possible that Home Depot (HD) and Lowes (LOW) could see their stocks rise as people flood into their stores looking for equipment and materials to begin repairs. Insurance companies, specifically those with big property and casualty insurance businesses, could see their stocks decline as investors worry about how much exposure the companies might have toward insuring hurricane damage. It's worth noting that any post-disaster decline insurance stocks tends to be short lived since companies use the storm as an excuse to raise rates.
The newsletter should be back on schedule tomorrow with the markets poised to re-open.